JBS posts good results for 2013

Brazil

Published: 19 May, 2014

JBS SA, the largest meat processor in the world, have published its Annual and Sustainability Report for 2013 which has seen profits in JBS Mercosul business rise by 43%, this includes its hide and leather making operations.

JBS Mercosul business unit produces beef in Brazil, Argentina, Paraguay and Uruguay; processed hides and byproducts such as biodiesel, collagen, hygiene and cleaning products, among others, in Brazil, with a total of 101,891 employees. In 2013, the business unit recorded net revenue of R$25.8 billion (US$11.6 billion), 43.3% higher than in 2012.

JBS Couros, its leather division, currently operates 25 tanneries worldwide and consolidated its position as the largest leather producer in the world since taking on the leather operations of former rivals Zenda Leather.

Overall JBS SA achieved in 2013 a net revenue of R$92.9 billion (US$41.9 billion), 22.7% higher than the previous year. This increase was due to growth in all businesses, particularly in Mercosul. The growth in net revenue in that unit, 43.3%, was driven by improved sales both domestically and in exports, coupled with the consolidation of Seara in the 4Q13. Ebitda in 2013 was R$6.1 billion (US$2.8 billion), an increase of 39.0% compared to 2012. The consolidated Ebitda margin in 2013 was 6.6%. This reflects the improved performance of all business units, especially for operations of Mercosul that had growth in Ebitda of 9.8% and poultry in the United States (PPC) recording growth in Ebitda of 100.1%.

JBS Couros Itumbiara (GO)

“The global economic scenario looks favorable. We believe that the recovery of the US$ has not yet ended. Our feeling is that the US$ will continue to strength in relation to the Brazilian Real and that our exports, as well as the valuation of our assets, will continue to be benefitted. It is worthwhile to remember that the Company’s exports last year were approximately US$12 billion, a relevant increase of 20% in relation to 2012. This increase of about US$2 billion in exports was due essentially to two factors. The first is the increase in consumption and demand in the emerging markets. The second is the increase in the number of countries that we are exporting to. More than 150 nations receive JBS products from a production platform consolidated in the most competitive regions in the world. This fact demonstrates a consistency in our exports that guarantees access to 100% of the consuming markets”, commented, Wesley Mendonça Batista, Global CEO of JBS S.A in the report.

In June 2013, JBS Couros achieved four certifications from the Leather Working Group. The tanneries in Cascavel (CE) and Itumbiara (GO) were both awarded with the gold medal and the units in Lins (SP) and Uberlândia (MG) were awarded with the silver medal. All of them were graded “A” for traceability.